Consulting Project: Freixenet Germany
Improved marketing sourcing delivers more marketing without increasing the budget. The German subsidiary of Spanish cava and wine producer Freixenet has put its marketing sourcing under scrutiny.
In a pilot project with INVERTO, the market leader turned the spotlight on its bought-in costs for print products, displays and pallets.
Optimising our sourcing in marketing and logistics is part of our company strategy for the German market. This strategy has also been adapted to the current economic situation,” explains Volker Gabel, commercial manager of Freixenet Deutschland GmbH. “As part of this, we regularly review how our resources are used in all areas of business.”
Over the last few years, Freixenet has sold an average of 40 million bottles of cava and wine in Germany, its largest foreign market. Since 2008, Freixenet‘s German operations have been managed independently from its headquarters in Wiesbaden.
As marketing plays a major role in Germany, the company launched pilot sourcing projects to ensure the available budget is put to optimum use. The projects for print products, displays and pallets were completed in three months, resulting in optimised terms and conditions of supply and an expanded supplier base.
More initiatives without increasing the budget
Working with sourcing consultants from INVERTO, Freixenet‘s project team of purchasing, marketing and logistics staff first took a closer look at the products and services to be sourced, such as the various print products and the range of displays. The project team started the optimisation process by reducing the number of displays. Increasing standardisation in this way made the subsequent sourcing processes more effective. Having developed precise specifications, a comprehensive market test was now possible.
After several rounds of tendering, plus discussions and factory audits of potential suppliers, Freixenet Deutschland concluded negotiations at the end of January 2010.
“Transparency in terms of products, services and price in the supply market laid the foundation for a very successful project,” comments Volker Gabel. He points out that a professional partnership with suppliers is crucial in achieving this, emphasising: “It‘s not just about the terms and conditions of supply. It‘s also about the quality and flexibility of not only the sourced products and services, but also the shared processes used to develop new and existing products and services. We also agreed an improved level of service to enable us to respond more quickly and flexibly to the changing demands made by the German market on our product portfolio, while still paying due attention to costs. In many companies, there is still potential for improvement when it comes to marketing sourcing,” summarises INVERTO Principal Verena Deller, who led the Freixenet project.